The idea to make use of money lying wasted in old and forgotten bank accounts
was first included in Labour’s general election manifesto in 2005 and became
law three years later.

Two years on, however, the first funds have yet to be passed to community projects or charities.

Under the terms of the 2008 Dormant Bank Accounts Act, money left untouched for at least 15 years was due to be used for youth facilities, literacy projects and a social investment bank which would have awarded grants to community groups.

But law also stated that the money could not be tapped into until the Treasury established a “Reclaim Fund” to attempt to track down savers with dormant accounts. This has yet to happen.

A banks or building society account is classed as dormant if there has been no customer activity, such as a transaction or query like a statement request, for 15 years.

An estimated £500 million lies dormant in bank and building society accounts, and another £435 million in National Savings and Insurance.